Why should I support the Covid-19 Debenture Donation Campaign?

Supporting the Campaign

There are two key benefits for Debenture Holders:

1. Your support will help to directly support community rugby through providing vital funding to the RFF and RFU; and
2. Debenture Holders who make a valid Gift Aid declaration and are individual UK higher rate (40%) or additional rate (45%) income taxpayers, may be eligible for UK tax relief through their self-assessment tax return.

How has the present-day value of my Debenture Loan been calculated?

Each Debentures Loan has been valued on the basis of an estimation of what a knowledgeable financial market participant would pay today in order to receive the amount due from each Debenture Loan in the future.

This estimation involves discounting the future sum for both the time value of money, based upon UK government borrowing rates, and a risk premium to reflect the credit risk arising if the RFU were not in a financially solvent position to be able to redeem the Debenture Loans at maturity.

This risk premia is estimated by using methodologies available from credit rating agencies to assess the financial standing of the RFU and comparing this to the risk premia on loans with a similar risk profile.

What if I chose for the RFU to buy back my Debenture, but not donate?

Should you chose to participate in the Campaign and allow the RFU to buy-back some or all of your Debenture Loan(s), but not to donate your Debenture Loan(s) to the RFF (Step 3), it is unlikely that the RFU will accept your offer of buying back your Debenture Loan(s). If you proceed on this basis, the RFU will notify you by email should they wish to accept your Offer(s).